Sanovel Owner Said to Explore Sale of Turkish Drugmaker

Toksoz Holding AS, a Turkish food and
pharmaceutical group, is exploring a sale of Sanovel Ilac Sanayi
& Ticaret AS, people with knowledge of the matter said.

Toksoz is working with Greenhill & Co. (GHL), Alpacar Associates
and JPMorgan Chase & Co. (JPM) to sell most of closely held drugmaker
Sanovel, the people said, asking not to be named because the
plans are private. Toksoz is seeking a valuation of more than $1
billion, two of the people said. Potential buyers may be willing
to pay $750 million to $1 billion, another person familiar with
the matter said.

Sanovel, based in Istanbul, makes anti-inflammatory, anti-asthmatic and antibiotic medications as well as veterinary
drugs, according to its website. It is among the 10 largest
pharmaceutical companies in Turkey, the website says.

Transactions in Turkey may prove more challenging amid
political unrest that has affected markets. Protests against
Prime Minister Recep Tayyip Erdogan and his government roiled
Turkey’s markets last month, with the stock index down 2.8 percent
since the start of the year.

While the sale process is not currently under way, Sanovel
has drawn interest from international drugmakers, one of the
people said.

Sanovel Sales

Sanovel had about $227 million of sales to pharmacies last
year, one of the people said. The figure didn’t include exports
and direct sales to hospitals, the person said.

Turkey has been a popular target for pharmaceutical deals
in recent years, with companies seeking to tap its $786 billion
economy, which grew 2.2 percent last year. Amgen Inc. (AMGN), the
world’s largest biotechnology company, agreed to buy closely
held Mustafa Nevzat Pharmaceuticals for almost $700 million last
year. Zentiva NV, a Czech drugmaker bought by Sanofi (SAN) in 2009,
acquired 75 percent of the generic-drug unit of Turkey’s
Eczacibasi in 2007 and later purchased the rest.